NPA targets McKinsey, Trillian assets for work done for Eskom

The NPA have taken a step which could go some way towards cleaning up their reputation.

Companies linked to the infamous Gupta family find themselves with a battle on their hands as the NPA is set to serve preservation orders on them.

NPA spokesperson Luvuyo Mfeka denied reports that Gupta assets were set to be seized on Tuesday and confirmed that assets from American firm McKinsey as well as Trillian worth R1.6 billion in total are on the line in relation to work both companies did for Eskom.

The preservation orders were approved by NPA National Director of Public Prosecutions Shaun Abrahams and the companies have 90 days to respond.

Letters of demand were issued in October by Eskom head of legal compliance Suzanne Daniels, who has since been suspended, to Trillian and McKinsey. This was the amount collectively paid to both.

Eskom disputed the lawfulness of the contracts the utility entered into with the respective companies, stating that fees were supposed to be paid in an hourly rate instead of percentages.

“The papers were supposed to be served tomorrow and then we would have communicated after they were served,” Mfeka said.

It’s now up to the companies to produce evidence that the assets in question were acquired within the law and failure to do so would lead to the NPA’s Asset Forfeiture Unit stepping in.

This move by the NPA is their first attempt at prosecuting key players in state capture.

In September it was uncovered by AmaBhungane, the investigative team which dug up the infamous #GuptaLeaks, that McKinsey and Trillian were planning to charge the energy utility exorbitant consultancy fees amounting to R8 billion.

McKinsey defended their conduct stating that the fees they were charging Eskom were nothing out of the ordinary for the nature of the services they were offering.